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What happens when a person goes into a nursing home as a Medicaid patient and cannot pay her mortgate?

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papaamp Joined: 15 Jul 2011 Posts: 1 1.45 Dollars($)	Posted: Fri Jul 15, 2011 4:55 pm    Post subject: What happens when a person goes into a nursing home as a Med Like 0 Dislike 0 My mother in law has a mortgage on her house. She recently went into a nursing home, is now on Medicaid so her pension and Social Security must go to the nursing home, so no funds are available to make her mortgage payment, taxes, insurance, etc. She is widowed. The house is probably worth about the amount of her mortgage, given the real estate market and the fact she has not maintained/updated for many years. While we have notified the bank by phone about the inability to pay the mortgage, their basic response was, after she missed a few payments, it would go into foreclosure. Any advice on what to do? We have been somewhat maintaining the property, cutting the grass and things like that. We have no interest nor can afford to take over the property. In fact, we'd like to walk away at this point. One issue with abandoning the property is we live in the same area and do not want the property to become an issue for the neighbors and the community. Is there any way we can just turn over the keys to the bank? Do we have to wait for them to foreclose on her? Any advice would be most appreciated.
adonis Joined: 22 Oct 2005 Posts: 10574 Location: ALASKA 1090.82 Dollars($)	Posted: Fri Jul 15, 2011 9:01 pm    Post subject: Like 0 Dislike 0 Hi papaamp, It is true that if the mortgage debts are not paid on time, the lender will foreclose the property. Your mother-in-law can apply for a deed in lieu of foreclosure as she is unable to pay off the mortgage. If the lender accepts her request, she will not only be able to get rid of the property but the lender won't come after her for any deficient balance. _________________ Procrastination is the enemy of your financial success

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